KPMG settles case, will pay $456 million

NEW YORK — Accounting firm KPMG will avoid an indictment for selling potentially illegal tax shelters by accepting an outside monitor and paying a $456 million fine, the New York Times reported on its Web site.

Several former KPMG partners involved in the tax shelters could face criminal charges, the paper reported. Former Securities and Exchange Commission Chairman Richard C. Breeden will monitor KPMG under the terms of the deal, the report said.

The Justice Department investigated KPMG and some former executives for promoting the tax shelters for wealthy individuals from 1996 through 2002.